Correlation Between Eagle Pointome and Teleflex Incorporated

Can any of the company-specific risk be diversified away by investing in both Eagle Pointome and Teleflex Incorporated at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Eagle Pointome and Teleflex Incorporated into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Eagle Pointome and Teleflex Incorporated, you can compare the effects of market volatilities on Eagle Pointome and Teleflex Incorporated and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Eagle Pointome with a short position of Teleflex Incorporated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Pointome and Teleflex Incorporated.

Diversification Opportunities for Eagle Pointome and Teleflex Incorporated

0.56

Correlation Coefficient

Eagle Pointome  Teleflex Incorporated

Very weak diversification

The 3 months correlation between Eagle and Teleflex is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Pointome and Teleflex Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teleflex Incorporated and Eagle Pointome is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Eagle Pointome are associated (or correlated) with Teleflex Incorporated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teleflex Incorporated has no effect on the direction of Eagle Pointome i.e., Eagle Pointome and Teleflex Incorporated go up and down completely randomly.

Pair Corralation between Eagle Pointome and Teleflex Incorporated

Given the investment horizon of 90 days Eagle Pointome is expected to generate 6.19 times less return on investment than Teleflex Incorporated. But when comparing it to its historical volatility, Eagle Pointome is 13.4 times less risky than Teleflex Incorporated. It trades about 0.2 of its potential returns per unit of risk. Teleflex Incorporated is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  11,488  in Teleflex Incorporated on July 22, 2025 and sell it today you would earn a total of  1,325  from holding Teleflex Incorporated or generate 11.53% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Eagle Pointome  vs.  Teleflex Incorporated

Eagle Pointome

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Eagle Pointome are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong fundamental indicators, Eagle Pointome is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Teleflex Incorporated

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Teleflex Incorporated are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating technical and fundamental indicators, Teleflex Incorporated may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Pair Trading with Eagle Pointome and Teleflex Incorporated

The main advantage of trading using opposite Eagle Pointome and Teleflex Incorporated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Pointome position performs unexpectedly, Teleflex Incorporated can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Teleflex Incorporated will offset losses from the drop in Teleflex Incorporated's long position.

The idea behind Eagle Pointome and Teleflex Incorporated pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

Check out your portfolio center.

Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Technical Analysis module to check basic technical indicators and analysis based on most latest market data.